Exam 6: The Economics of Political Action

Current tax rates are insufficient to finance the benefits promised by both the Social Security and Medicare programs. Are these unfunded promises surprising according to economic theory?

With a strong and active federal government, why do we need state and local governments?

How does a voting structure that relies on unanimity for an action guarantee that no one will be adversely affected? Why isn't this type of decision making used more frequently?

In a representative democracy, government action results from the

Despite being a college graduate, Ethan cannot name any of his representatives in Congress and he has no idea which issues are being debated and voted on this week in Congress. According to public choice analysis, Ethan is

The branch of economics that attempts to understand the outcomes observed in the public sector by examining the incentives faced by the individual actors involved (such as voters, politicians, and bureaucrats) is known as

According to the economic way of thinking, personal benefits and costs influence the actions of

Which of the following represents why private production tends to be more efficient then government production?

The term pork-barrel legislation refers to

Dairy farmers hold an annual Capitol Hill ice cream social that provides free ice cream for congressional staffers during which time representatives from the industry discuss issues with, and provide information to, congressional staff. This is an example of

Government decisions tend to be biased toward actions that have

Which of the following is an example of political action that reflects the shortsightedness effect?

Which of the following is true of government activities under a system of representative democracy?

In which of the following situations is representative democracy most likely to lead to the adoption of an inefficient government program?

Which of the following is an example of a good that is produced by the public sector but consumers purchase it in proportion to the benefit received?

Public choice analysis suggests that bureaucrats and public-sector managers have a strong incentive to

Economics indicates that government funding of special interest projects and favoritism of some business firms relative to others will lead to

A local government operates a city recreation center with a pool and tennis courts. The center is financed through $50 annual membership fees (required for members to use it). This type of financing is an example of a

Which of the following is true?

Public choice analysis suggests that the primary motivating factor for politicians will be finding the policies that are most likely to